Biomerica (NASDAQ:BMRA – Get Free Report) and Oruka Therapeutics (NASDAQ:ORKA – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
Risk and Volatility
Biomerica has a beta of -1.1, meaning that its share price is 210% less volatile than the S&P 500. Comparatively, Oruka Therapeutics has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Profitability
This table compares Biomerica and Oruka Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Biomerica | -111.89% | -84.62% | -62.72% |
| Oruka Therapeutics | N/A | -24.96% | -21.22% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Biomerica | 0 | 0 | 0 | 0 | 0.00 |
| Oruka Therapeutics | 0 | 0 | 7 | 1 | 3.13 |
Oruka Therapeutics has a consensus target price of $43.17, indicating a potential upside of 107.33%. Given Oruka Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Oruka Therapeutics is more favorable than Biomerica.
Valuation and Earnings
This table compares Biomerica and Oruka Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Biomerica | $5.41 million | 1.23 | -$5.98 million | ($0.37) | -1.07 |
| Oruka Therapeutics | N/A | N/A | -$5.34 million | ($6.26) | -3.32 |
Oruka Therapeutics has lower revenue, but higher earnings than Biomerica. Oruka Therapeutics is trading at a lower price-to-earnings ratio than Biomerica, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
22.3% of Biomerica shares are owned by institutional investors. Comparatively, 56.4% of Oruka Therapeutics shares are owned by institutional investors. 15.0% of Biomerica shares are owned by insiders. Comparatively, 22.7% of Oruka Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Oruka Therapeutics beats Biomerica on 11 of the 14 factors compared between the two stocks.
About Biomerica
Biomerica, Inc., a biomedical technology company, develops, patents, manufactures, and markets diagnostic and therapeutic products for the detection and/or treatment of medical conditions and diseases worldwide. The company's diagnostic test kits are used to analyze blood, urine, nasal or fecal specimens from patients in the diagnosis of various diseases, food intolerances, and other medical complications; or to measure bacteria, hormones, antibodies, antigens, or other substances which may exist in the human body, stools, or blood in extremely small concentrations. It primarily sells its products for gastrointestinal diseases, food intolerances, and various esoteric tests at the physicians' offices and over-the-counter drugstores, and hospital/clinical laboratories. The company is also developing InFoods IBS, that uses a simple blood sample to identify patient-specific foods which may alleviate irritable bowel syndrome symptoms; and H. Pylori diagnostic test that indicates if a patient is infected with the H. Pylori bacteria. In addition, it develops products to indicate if a person has been infected by COVID-19. Biomerica, Inc. was incorporated in 1971 and is headquartered in Irvine, California.
About Oruka Therapeutics
ARCA biopharma, Inc., a biopharmaceutical company, develops genetically-targeted therapies for heart failure and cardiovascular diseases. It is positioned to bring personalized therapies for the treatment of cardiovascular disease, through the use of genetics. Complementing the Company’s cardiovascular science, ARCA’s management team has significant experience in developing and commercializing cardiovascular products. The Company’s business focus combines expertise in cardiovascular pathophysiology, molecular genetics, clinical development and product commercialization. It is currently developing Gencaro (bucindolol hydrochloride), a cardiovascular drug for the treatment of chronic heart failure. The company is based in Broomfield, Colorado.
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